How Does Programmatic Advertising Work With Artificial Intelligence

What is Programmatic Advertising

You know those plans that we make with friends about going to Goa on a road trip which almost never happens. My friends and I were talking about going and attending a Music Festival, visiting the beautiful beaches and even trying out some Watersports. The next morning, when I opened my Instagram, I was shook to see an advertisement on a travel package to Goa. I’m sure this has happened to you before as well. Not only did this pave the way for hundreds of memes about how the FBI are always watching.

It also helped many companies to discover their target audience and reel in people who may be interested in their products. Hence, boosting their revenue and the odds of identifying them. This especially helped many of the newer companies in the industry get identified by the general public and make a name for themselves.

Now, I know it isn’t easy to convince the hedonistic era of today by just rambling on and making claims, you’ll want facts. Rock Hard evidence is what makes people believe in the success of something. O2, you may have seen their logo on Arsenal jerseys if you’re a football fan but the company actually manufactures phones, sim cards and provides broadband to mobile users all over the UK. They wanted to promote an engaging and fresh new idea, ‘refresh tariff’ TV to its patrons. They did so by collecting information on the locations and device type among many other user information of the throng of people registered under them. With these information, they were able to put up ads with information on the recycling value of their current phones, what they may prefer to upgrade to and other best offers. They made videos tailored to these demographics and by putting out programmatic advertisements like such out there, they saw a rampant proliferation in click through rate of 128%.

How Does Programmatic Advertising Work

So, let us delve more into how Programmatic Advertising really functions.

Artificial Intelligence(AI). There have been numerous research and advancements in this area of study. And it is the main engine of what drives the whole Programmatic Advertising realm. It exploits visual perception, speech recognition and the ability to make decisions like a human to give these personalised suggestions to an user. Along with AI, real time bidding also drives this concept as it plays a part in deciding whether the travel company or the gym franchise gets to you first. This is a method of buying slots on the inventory which is in this case the space for ads on a website. It does this instantaneously by a per-impression basis on something quite like an online auction.

Role of Artificial Intelligence

Artificial Intelligence, a revolutionary concept that is making the world smarter, faster and more comfortable with all its endeavours. It has the ability to study and process huge amounts of data. Now, don’t get me wrong, computers were able to process large data before as well but with artificial intelligence, these computers are equipped to make predictions, conclusions and inferences by analyzing the trend.

AI-powered devices can read text, identify images, maneuver around obstacles, hear and understand. Gmail uses AI to understand the text and predicts what your next word could be as it is taught by exposing the device to a large dataset. Similarly, it is being used to identify what the consumers may be talking about or searching for.

Though we have evolved in ways that leaves us all in awe. Our attention span however has diminished to a mere 8 seconds as of 2018. Companies have to capture their attention in the short time they have by picking the best slots and the apt platforms

This helps to ensure that the funds used by advertising agencies in Dubai are put to good use as it is only provided to those who require the service that it provides or the products. These ads can also directly bring traffic to their website and make transactions effortlessly.

Platforms that offer inventory have also been expanding their reach by making their database available in a wide range of formats. They can be bid for on mobiles, desktops, tablets, audio, TV, etc.


All the algorithms provided to the computers to work its magic allows the most efficient way in organising ad purchasing, placement and optimisation which in the end requires the companies to pay only for the ads that show up to the right audience at the right moment.

How about a possible example on how programmatic advertising can be implemented?

Let us say a particular makeup brand ‘Shinee’ wants to increase its sale in cosmetics.

It hires a platform that segments consumers according to their




-peak times

-Device type


And many other factors.

This will help the company narrow down females who have passion for makeup and live near their retail stores. Increasing the possibility of them dropping in during their lunch breaks or when the weather is nice and sunny.

Hence, it uses real-time data to filter the audience for the advertising campaign and allows Shinee to buy the inventory across multiple devices. Tweaking the advertisements to show up solely based on the consumers’ interests and activity on the web.

Future of Programmatic Advertising

Isn’t that amazing, how technology can do things that require human intelligence and maybe do it even better than us with increased efficiency and effect. It removes all the hope and gives companies a guarantee instead of just spending their buck on unfocused advertising.

The best part is that it is a win-win situation for everyone; the buyers, the sellers, the consumers. It saves all of their time and money. The buyers get their target audience, the sellers earn money for providing a platform and the consumers are led directly to their needs.

If you ask me, programmatic advertising is a big success with our generation as it may turn into a billion dollar industry in the near future in the US or UK. It is not something new, it has been around for awhile but its fruits are just being discovered.

They are incredibly helpful and make life easier in many ways. Just to share how they were helpful to me. I wanted to buy my brother a gift for his Birthday. I was searching all over the internet for official merchandise of his favourite artists and could only find the very expensive ones that did not ship to my location. But, later in the day, I was directed to a page that sold similar merchandise and even delivered to my location. It made my job very easy as all I had to do was click on the advertisement and purchase the product. It is going to change the way the world shops and its dominance is definitely imminent.